Airlines double freight rates for mango hurts exports
KARACHI: Local and foreign commercial airlines have doubled their freight rates for mango export from Pakistan thereby making export of the fruit less competitive than regional peers,
exporters said on Thursday.
A spokesperson of the Welfare Association Wholesale Vegetable Market Shaikh Waqar Ahmed told The News that almost all airlines including the national flag carrier increased their cargo charges by 100 percent while mango prices did not increase at that margin in the world, which reduced profit of exporters and made the export difficult for them. “Freight rates for Middle East increased to Rs70 per kg from Rs35 per kg last year,” he said.
Mango export started from May 25th through air routes and cargo went to Middle East, European countries and the South East Asian countries.
Pakistan’s export was closed for Iran, as later increased its duty to 250 percent and made exports impossible.
Iran had also increased duty on kinnow by 150 percent, he said.
“Iran was our solid market but they made our trade impossible because of higher duty charges while the government was not interested to handle the matter through negotiations,”
Due to increase in duty and international barriers on trade with Iran, mango export of 30,000 tons to Iran would also suffer. Smuggling through land route to Iran was not on record and did not earn foreign exchange for the country, another exporter said.
Indonesia also increased its duty to 45 percent, which also made difficult exports to it as India was capturing the markets of Pakistan in this region
while Australia and Mexico were competitors in the European markets.
“Airlines were charging lower freight in India as compared with Pakistan,”
said Haji Shahjahan, President Welfare Association Wholesale Vegetable Market.
Pakistan has set a target of 0.15 million tons of $50 million mango export this year, said Waheed Ahmed, Co-chairman All Pakistan Fruits and Vegetables Exporters, Importers and Merchants Association (PFVA). Last year Pakistan exported 0.134 million tons and earned $38 million tons.
Besides increasing their freight rates by 100 percent, airlines also delayed opening of their respective rates for almost 25 days. Ahmed said that they had requested the airlines to provide them air freight on May 1, but they delayed rates, which caused difficulty to the exporters in quoting the rates.
This year country was expecting around 30 percent decline in production to 1.2 million tons against 1.7 million tons of the last year. Reason was climate change and damage done to the mango trees besides season was delayed by two weeks.
The mango trees have suffered in Matyari and Mirpurkhas in Sindh and Multan, Rahimyar Khan, Muzzafar Garh and Khanewal in the Punjab, where mango production was low because of weather conditions, he said.
Ahmed said that this year Pakistan’s export to two new markets Japan and the USA would also suffer, as VHT plant installed by Japan in Pakistan gave very little quantity processing while mangos exported to the USA were costlier for consumer and exporters were not interested in the smaller market. Last year, mangoes were exported to these two countries in smaller quantity on experience basis, which did not succeed because of higher charges.
Association has suggested formation of common facility centre for export to Japan to ministry of commerce but no action was taken by the authorities, said the co-chairman of PFVA.
Airlines double freight rates for mango exports - thenews.com.pk
Pakistan: Increased mango freight rates make export difficult
Iran and Indonesia don't want pakistani mangoes
Iran increased import duty on pakistani mangoes @ 250%
Indonesia incerased import duty on pakistani mangoes @ 45%
Iran even don't want pakistani kinnow as Iran increaed import duty on pak kinnow by 150 percent
And India is gaining from it, as Iran and Indonesia have very low import duty for Indian imports